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A first birthday update.....

handy giff-staffer

Believe it or not giffgaff launched its beta service nearly a year ago on 25th Nov 2009 and so I thought it would be good idea to share with you what we have planned in the countdown to our first birthday and beyond.

 

There’s been a lot happening here at the Old Rectory and the team has been very busy, from developing new products and rationalising old ones, to getting our facebook community to help us spread the word.

 

If you ‘Like’ giffgaff on facebook, then you have probably seen us adding extra minutes to our £10 goodybag.  We asked our facebook community to help us spread the word about giffgaff – the more they spread the word and the more “Likes” we got, the more minutes we added to the £10 goodybag. The good news is that we hit every target we set , so we’ve been able to add an extra 100 minutes.

 

So the £10 goodybag will have250 UK minutes, unlimited text and mobile internet for just £10 for any member buying it between 15th November and 31st December 2010.  It’s a special offer to say thanks for spreading the word.

 

We’re also going to be updating our giffgaff Labs offer – our current 2p calls / 1p text Lab will be replaced with an exciting new one at the beginning of December.  I can’t reveal too much about it at this stage, except to say it’s called “Hokey Cokey” and the fact that it’s quite unlike any product on the market today. Watch the blog for more details.

 

Remember too that we’re reaching the end of our second payback points earning period , so points earned between June and November will be paid out as cash, airtime balance or can be donated to our community nominated charity in early December.

 

With a couple of new products on the way and our 1st birthday coming around soon we’ve taken the opportunity to spring (autumn?) clean our goodybag range also.

 

As you know, goodybags have been a great success overall but the £30 goodybag has always struggled in the popularity stakes.  Even when we reduced the price its popularity didn’t pick up with less than 5% of our members taking it  – so in the spirit of only having winners in our range we’re sending it to the great tariff resting place in the sky. It’ll be sad to see it go but fans of it will have until 21st November to buy one before we take it off the sale rack.

 

We’re also removing some phone numbers from within all goodybag allowances as they break our Terms and Conditions.  These are being used for call forwarding services which aren’t part of the goodybag offer, so you can still call them, but outside of your goodybag allowance. 

 

And finally, I can announce that our free mobile internet offer, which was due to end on Dec 1st, is going to be extended until the end of February 2011.  As many of you know, we developed a pricing plan in consultation with our members for data used outside of our goodybags a while back and the implementation of this has been delayed again.

 

So that’s all for now – as always, we’re  interested in your views and feedback – so don’t be shy and post a comment.

 

The gaffer

176 Comments
newcomer

think again giff gaff

 this is a big own goal having unlimted text and calls was a great selling point to pull people in to the site even if they were not spending that mutch

 if you have to get rid of it why so quick not very people power is it

i want to keep the £30 goodybag this is worst timing possible with christmas and new year i have 2 goodybags both £30 and expiry date 18th Dec - Merry Christmas and a Happy New Year - NOT

beginner

Interesting:

 

"When giffgaff route calls destined for what looks like UK mobile numbers we are charged what's called an interconnect fee. For UK mobile destinations the fee is about 4p per minute on average which is meant to reflect the cost of the destination networks masts, radio spectrum licence fees and other costs."

 

4p per minute - so GG mark up is +100% @ 8p if the calls come out of credit

 

£30 divided by 00.04 = 750 minutes before GG potentially lose money

 

Also GG must receive 4p per minute for inbound calls from other networks so they make money from people ringing into you - i am guessing over the entire GG population that is evenly balanced with as many calls in as out which would double that 750 to 1500 minutes before a loss is made

 

 

Lemta
N/A
Tell this is a joke! This truly is a sad day.:-( It's like Paris without eiffel tower. Well done Giffgaff, hope you rot in it!
aspirant
I won't miss the £30 bag myself as I'd never use that many minutes, and I suspect a lot of people who opted for it would actually have been better off with the £20 bag. The 5% takeup rate does seem like a reasonable and expected figure however so I'm certain this wasn't the only reason why the £30 bag was dropped - I always thought it was somewhat open to excessive use so imagine this must have been happening. To those who are thinking of jumping ship because of this (admittedly rather rushed) decision, I'd suggest trying out the £20 bag and seeing whether it really does work out more expensive before leaving giffgaff for the likes of Tesco or Asda. It's just a shame giffgaff will no longer have anything to compete directly with the unlimited call deals those networks are offering, as even if they are actually unnecessary for most people they do make a good selling point. Oh well I'm very happy anyway as the free data is all I really want. :)
navigator
Is this how the giffgaff idea, of not being tied to a contract, works? Unlike o2, giffgaff can cancel the tariff you want to use each month at the drop of a hat! Maybe there is something in the fact that o2 keep their deals, for existing customers, rather than drop them like the proverbial hot potato?
navigator

The idea that the 'Free' Internet is continuing seems really quite perverse.

If so many people wanted the £30 Unlimited goodybag, why are they keeping the possibly non-profit making 'Free' Internet?

newcomer

Dear GiffGaff,

 

As a new GiffGaff user, I was very disappointed to receive your mail about the removal of the £30 goodybag.

 

The reason I moved to GG was to make use of the £30 goodybag.

 

I was passing out sims to friend and family based on the great value of the £30 tariff.

 

Alas  now that the £30 goodybag is no longer available, your product no longer gives me (or my friends and family) the same value and reluctantly I will have to consider migration to another network/tariff.

 

Can I offer some suggestions to resolve this issue :

 

1) Leave the £30 goodybag as is.

 

2) Reduce the number of minutes in the £30 goodybag to 2500.

 

3) Create a £25 goodybag with 2000 minutes.

 

In the interim, if anyone comes across an "all you can eat" network/tariff, please let me know.

 

Mark Haringman

mark (at) haringman (dot) com

Matt
N/A

Regarding the loss of £30 goodybag, could this be something to do with the VAT going up in January?

Would they lose money out of each top up payment and therefore instead of breaking even, start to make a loss across all top ups regardless of which one and that would make the already potentially community damaging £30 package a bigger drain on the money pot available to having giff gaff labs, cheap(ish) standard top up rates and low(ish) prices for the other goodybags?

 

I've just found this in the community - http://community.giffgaff.com/t5/Discuss-giffgaff-Questions-and/20-vat/m-p/26980 and this too http://community.giffgaff.com/t5/Discuss-giffgaff-Questions-and/How-will-giffgaff-deal-with-any-VAT-...

 

I see that the comment from the community manager indicates giffgaff will initially absorb the cost, and therefore the £30 goodybag disappearing is the cushion they are using, especially saving some amount on network costs that would have been incurred by the unlimited users.

 

I used the £30 goodybag back when it was £35 and on special in the summer for £17.50. I think I have only used it once since, when it went to down to £30.

 

I agree 1 weeks notice is not smart in business, and I don't use social networks but I can see that also is not a smart move when you rely a lot on communities of people spreading the word and groups of people moving to the network en-masse.

 

That said, I'll have a bit of the £10 250mins goodybag before I decide on where I should look next. I left the 02 £15 a month for unlimited txts and web and still £15 to use on calls. Their call costs were quite high but I only required the internet and the texts.

Having 30 days worth of a set number of minutes vs £15 credit to spend whenever I like, even after I have run out of the free internet and free txts, I'm not sure the trade-off is worth it for me as it has mainly just been about the unlimited internet usage for the iPhone more than calls.

 

On o2, even if I continue to top up £15 a month every month like the giff gaff goodybags, the credit I would amass would be greater than my usage, so there would always be a fall back for texts and web if I decided not to top up one month.

Just something for others still on o2's Txt & Web to think about before jumping ship.

 

So glad I haven't ported my number just yet, been holding out to see if there is any downsides to this virtual network with it being so young.

 

I voted YES on the Poll that I would use the £30 goodybag in the future should it be brought back.

 

Regards,

 

MATT

handy giff-staffer

Thanks for your comments everyone - having read them all, there are a few shared concerns that I'd like to address.

 

Many fans of the £30 of goodybag posted over night and were concerned about the notice period for the withdrawal of the product so here's a little more detail about how it will work...

 

If you currently have a live £30 goodybag it will stay live until the end of its due date - we're not cutting any goodybags short.

 

As with all goodybags you can "stack" your next goodybag on top your current one - so if you buy the £30 goodybag on 21st November and stack another one on top then it'll take you right through until 21st January.

 

Because of the ability to stack goodybags everyone has more than a months use of the £30 goodybag if they want it - and in some cases up to 2 months. 

 

A few members have questioned the popularity of the £30 goodybag  - I can re-assure you that the number of members who bought this product really was very low - less than 5% of our member base.

 

It was suggested in a few threads that we could have kept the goodybag going - either just by leaving it as it was, putting the price up or reducing it further (to increase take up). We considered all three options and I'll take you through our reasoning for going down any of those paths...

 

1) Putting the price down. We had already tried reducing the price from £35 to £30 and take up didn't really shift. We considered a £25 price point but it didn't work out financially. Remember our voice minutes on this goodybag were truely unlimited - other networks have fair-use policies that actually limit the number of minutes. We have never believed that limiting an "unlimited" product is right, and whilst it may have helped a £25 product fly, we decided to stick to this belief.

 

2) Putting the price up. We had already tried to market the product at £35 so the price point would have been £40 or above. Whilst this would have worked out financially our view was that sales would have more than halved and made the product even more unviable as discussed below in point 3.

 

3) Leaving the £30 in place. This was the most tricky decision. We judged that we needed to have a vibrant, active member base on all our goodybags  -  every goodybag we have has a running cost and takes up merchandising space on our web pages, SIM packs, advertising schedules etc. So having done our best to boost the popularity of this one we thought it was best to call it a day.

 

Could we have consulted the community? The answer is of course yes, but then at the same time we can't consult on everything we do - we wouldn't have time left in the day for anything else! So in this case our thinking was that since the choices we had with the goodybag were limited and we wanted to stick to our "vibrant goodybag" strategy that this was one of the occasions where we wouldn't consult beforehand.

 

As the old saying goes "You can't please all of the people all of the time" and if you're one of the £30 goodybag's fans I can understand that you feel hard done by. I also hope that you can see that we tried our best to make the product work, and after having given careful consideration to the alternatives, took a decision that was in the long term, best interests of giffgaff and the majority of its members.